LG India margin improves despite a 10.18% sequential revenue drop
Lower expenses and interest costs supported profitability, while other income remained a meaningful 10.79% of pre-tax profit.
Filed 13 Aug 2026, 17:29 IST · after market close · LG Electronics India Ltd (LGEINDIA)
Key takeaways
- Standalone revenue fell 10.18% QoQ, but expenses fell faster at 10.96%, lifting operating margin by 0.76 percentage points.
- Net profit declined 5.76% QoQ to Rs 652.86 cr, with other income contributing 10.79% of profit before tax.
- Operating margin rose to 12.50% for a third straight quarter but remained 0.78 percentage points below the 13.28% median for 169 reported sector peers.
Price around the results
Lower expenses cushioned the sequential revenue decline
LG Electronics India’s standalone revenue fell 10.18% QoQ to Rs 7,233.35 cr, while expenses declined 10.96%. Because costs fell faster than revenue, operating margin expanded by 0.76 percentage points to 12.50%. Management said home-appliance and air-solution growth came from all categories, including compressor-based products and washing machines, rather than seasonality alone.
Profit fell, with non-operating income still material
Net profit declined 5.76% QoQ as profit before tax fell 5.69%, despite a 33.62% reduction in interest costs. Depreciation increased 10.01%, while the tax rate was almost unchanged, rising 0.06 percentage points to 25.65%. Other income accounted for 10.79% of pre-tax profit, making it a meaningful part of reported earnings.
Margin recovery continues, but LG remains below the peer median
Operating margin has risen from 4.77% in Q3FY26 to 11.74% in Q4FY26 and 12.50% in Q1FY27, marking three consecutive quarters of improvement. Even so, LG’s margin was 0.78 percentage points below the 13.28% median among 169 Consumer Discretionary peers that had reported the quarter. Management said higher industry input costs were absorbed through calibrated price actions.
Management points to festive demand and premium products
Management said home-appliance demand is expected to remain favourable in Q2FY27, supported by monsoon consumption and festive stocking. It also said television demand is expected to be led by festive sales, premiumisation and large-screen adoption, with new QNED and OLED products planned for the category. The company said government and institutional orders supported the ID business, while electronic blackboard and second-generation Micro LED launches are expected to support its growth and margins.
Results were filed after market close
The results were filed after market close, so there was no immediate market reaction in the supplied data. After the three most recent results, the stock fell each time, with a median absolute move of 3.28%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹7,233 cr | ₹8,054 cr | -10.18% |
| Other income | ₹95 cr | ₹101 cr | -6.27% |
| Expenses | ₹6,329 cr | ₹7,108 cr | -10.96% |
| Operating profit | ₹904 cr | ₹945 cr | -4.35% |
| Operating margin (%) | 12.50% | 11.74% | — |
| Interest | ₹9 cr | ₹14 cr | -33.62% |
| Depreciation | ₹112 cr | ₹102 cr | +10.01% |
| Profit before tax | ₹878 cr | ₹931 cr | -5.69% |
| Tax | ₹225 cr | ₹238 cr | -5.49% |
| Net profit | ₹653 cr | ₹693 cr | -5.76% |
| EPS (₹) | ₹9.62 | ₹10.21 | -5.78% |
Operating margin of 12.50% compares with a Consumer Discretionary sector median of 13.28% across 169 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- H&A growth was driven by all categories, including strong compressor-based demand and robust washing-machine growth.
Guidance & outlook
- H&A demand is expected to remain favorable in Q2 FY27, supported by monsoon consumption and festive stocking.
- Television demand is expected to be driven by festive season sales, premiumization and large-screen adoption.
New orders
- Government and institutional orders supported momentum in the ID business.
New products
- New QNED and OLED products are planned to strengthen television category leadership.
- Electronic blackboard and second-generation Micro LED MAGNIT launches are expected to support ID business growth.
Competition
- LG’s premium portfolio continued to outpace industry trends.
Problems & risks
- Geopolitical and macroeconomic headwinds continue to affect the outlook.
- The industry faced higher input costs during the quarter, which were absorbed through calibrated price actions.
What to watch
- Whether standalone operating margin holds above 12.50% and narrows the 0.78-percentage-point gap to the 13.28% peer median.
- Whether revenue momentum improves from the 10.18% QoQ decline as management’s cited monsoon consumption and festive stocking play out.
- Whether other income remains below or above its current 10.79% share of profit before tax.